By 2030, the global market for AI in fintech is estimated to reach $79.4bn, driven by the pressure on finance teams to stay ahead amid ongoing economic uncertainty. With the EU facing the hard reality of tariffs on exports to the US, margins are tighter than ever for businesses trading internationally. In this high-stakes environment, faster invoice processing isn’t enough. Businesses need greater intelligence to anticipate risks, adapt to fluctuating currency markets and guide payment decisions with precision.
Perhaps unsurprisingly, AI is the real game changer here. Small and medium-sized multinationals (SMMs) must begin adopting AI, either themselves or through financial partners, to move from reactive processes to predictive strategies. Visibility into payment behaviours, proactive foreign exchange (FX) practices and AI-powered intelligence into currency rates give SMMs a robust strategy to navigate a challenging economic environment.
AI-powered payment strategies
For SMMs, keeping a healthy cash flow in an uncertain global environment is challenging. As currencies continue to fluctuate, forward-looking payment strategies are critical.
Payment patterns, for example, can be difficult to keep track of when dealing with multiple currencies. Using AI, SMMs can detect patterns in past payment behaviours, such as when transactions are likely to happen and in what currency. For SMMs that often juggle different accounts in different currencies, taking insights from AI can optimise the process and avoid payment delays, unnecessary currency conversions and even reduce FX fees by optimising timings to take advantage of the best rates. This can help alleviate strains on cash flow, maintain healthy trading relationships and, importantly, increase revenue.
The risk of missed or overdue payments is heightened for SMMs making payments in multiple currencies. For instance, if an international supplier must be paid in its local currency, but the necessary funds are in the SMMs’ own local currency, delays in paying the supplier or risking unfavourable exchange rates are likely. With AI, ensuring suppliers are paid on time can become an autonomous process, reducing the risk of involuntary oversights. AI can help the business plan to have the right currency available at the right time, in the right account.
Real-time FX insights
Global market instability will continue to force businesses to react quickly to sudden fluctuations. Exchange rates constantly shift, the hegemony of the dollar – once a well-accepted truth – is in question and the financial impact of being unprepared for any possibility can have irreparable consequences on revenue. Against this backdrop, analysing FX exposure and monitoring currency trends in real-time is key.
AI can automatically identify mismatches between currency pairs, flagging inconsistencies without manual input. This real-time process helps reduce financial vulnerability and risk in tumultuous markets. Long-term financial planning is also increasingly vital. Understanding the best time for hedging and renegotiating contracts with suppliers can help businesses gain a critical edge over their competitors. Predictive AI insights, which provide informed, data-driven decisions, reduce the impact of global volatility and protect profitability in markets where uncertainty has become the norm.
By integrating real-time FX analytics with proactive hedging and contract management, SMMs can not only safeguard margins, but also seize time sensitive opportunities, strengthening their resilience in an era of constant change.
AI as the competitive edge
Benchmarking FX volumes against industry peers is an essential practice for SMMs seeking to optimise their financial strategies. By using AI to compare the volume of FX transactions with competitors and suggest ways to improve operations, SMMs can gain a better understanding of their positioning in the market and areas of opportunity they may otherwise be missing.
Equally important is the ability to monitor specific payment changes in real-time. With AI, tracking how payment patterns are different across suppliers, customers or specific regions can help SMMs improve cash flow, operational efficiency and identify potential risks. Based on these insights, AI can also suggest smarter payment decisions. With forward-looking financial management, businesses can operate confidently. Consolidating payments, choosing an alternative currency or changing payment dates can allow businesses to benefit from more favourable FX rates. Not only can AI help to reduce unnecessary costs and possible weaknesses, it also helps strengthen SMMs’ overall resilience and confidence, allowing them to expand into new, untapped markets.
The future of cross border payments
Ongoing global instability will continue to cast uncertainty on the economic future of many businesses. By adopting AI processes within international payment strategies, or partnering with third parties that have a clear AI roadmap, businesses will be better positioned to protect profit margins from rapidly changing market fluctuations. To navigate the ongoing volatile international trade landscape, AI-driven payment and FX strategies can not only help protect SMMs from ongoing uncertainty, but also become a strategic advantage in driving revenue growth.
